Market Basket standoff ends with sale to ousted CEO

Barbara Hair of Kennebunkport, who has been called back to work at Market Basket, reacts with joy and relief Thursday morning in Biddeford. John Patriquin Staff Photographer

TEWKSBURY, Mass. — The protracted negotiations between the rival factions of the Market Basket supermarket chain came to a close Wednesday night with the completion of a deal to sell the company to former CEO Arthur T. Demoulas.

Market Basket said in a statement late Wednesday that Demoulas would return to the company and that he and his management team would handle day-to-day operations while the purchase is completed.

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An early shopper at Biddeford's Market Basket that re-opened Thursday morning. John Patriquin Staff Photographer

Lisa Lemieux, center right, from Salem, New Hampshire, gets emotional as workers watch their new owner, Arthur T. Demoulas, during a news conference on a TV at the Market Basket in Biddeford. John Patriquin / Staff Photographer

Statement from Arthur T. Demoulas and Market Basket

Market Basket and its shareholders are pleased to announce today that the Market Basket shareholders have entered into a binding agreement pursuant to which the Class B shareholders will acquire the 50.5% ownership interest of Market Basket currently owned by the Class A shareholders.

Effective immediately, Arthur T. Demoulas is returning to Market Basket with day-to-day operational authority of the company. He and his management team will return to Market Basket during the interim period while the transaction to purchase the Company is completed. The current Co-CEO’s will remain in place pending the closing, which is expected to occur in the next several months.

All Associates are welcome back to work with the former management team to restore the Company back to normal operations.

The shareholders and the Company would like to thank Market Basket customers and partners for their strong support through the years. Our shared goal is to return Market Basket to the supermarket that its customers have come to rely on for service, quality and best prices. We look forward to seeing you at your local Market Basket.

“Effective immediately, Arthur T. Demoulas is returning to Market Basket with day-to-day operational authority of the company,” the website said.

The two sides of the family have been feuding for years.

The sale could still take months to close, according to the Globe, and follows a standoff so bitter that the governors of Massachusetts and New Hampshire intervened.

Last week, Deval Patrick and Maggie Hassan predicted that the deal would be signed over the weekend, but after a series of postponed board meetings, nothing happened until Wednesday night.

The deal reportedly gives Arthur T. full authority to manage the 71-store operation, including a location in Biddeford. The chain employs 25,000 full- and part-time workers.

It also reported that Arthur T. and his management team will return during the interim period while the transaction to purchase the company is completed. The current CEOs will remain in place pending the closing, which is expected to occur in the “next several months.”

The website says that all associates are welcome back to work.

Justine Griffin, a spokeswoman for Arthur T. Demoulas, could not be reached Wednesday.

The late-night deal follows several weeks of employee firings and protests by thousands of workers, who called for the board of directors to reinstate Demoulas. They also asked customers to boycott the stores, which analysts said was costing the company millions of dollars in revenue each day.

About 200 distribution and administrative workers walked off their jobs in mid-July. The walkout was a reaction to the board’s ouster of Demoulas.

The job action left shelves at many Market Basket grocery stores empty. Thousands of part-time workers were taken off the schedule indefinitely as a result, including about 270 workers at the Biddeford store.

Demoulas is a hero to many employees. Stories of his generosity, sincerity and compassion are well known within company circles.

But in court documents, Arthur S. has alleged that Arthur T. abused his authority as CEO to pursue a rapid expansion strategy that the majority of board members did not support.

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